ExxonMobil is considering a return to Russia, following a meeting between Russian President Vladimir Putin and US President Donald Trump in Alaska. The US energy giant had withdrawn from the country in 2022, along with many other Western businesses, due to the escalation of the Ukraine conflict. However, Putin has now allowed ExxonMobil to reclaim its stake in the Sakhalin-1 oil and gas enterprise in the Russian Far East.
The Sakhalin-1 project, located in the Russian Far East, was initially a joint venture between ExxonMobil, Rosneft, and other international companies. After ExxonMobil’s withdrawal, its 30% stake was transferred to a Rosneft subsidiary, Sakhalinmorneftegaz-Shelf. Despite international pressure, a state-run Japanese consortium, Sodeco, retained its 30% stake, while India’s state-owned ONGC Videsh held on to its 20% share.
According to sources, senior executives at ExxonMobil have been holding secret talks with Rosneft, discussing the possibility of rejoining the Sakhalin project if both governments approve it as part of a broader Ukraine peace deal. The company is primarily seeking to recover financial losses incurred after leaving the project in 2022. Rosneft is reportedly open to restoring Exxon’s participation, valuing the US firm’s capital, technology, and managerial expertise as potential assets to the project.
The potential return of ExxonMobil to Russia remains uncertain and depends on several factors, including the outcome of the Ukraine conflict and the terms offered by the Russian government. The US company’s decision to return will also be influenced by the stance of the US government, which may either broker a resolution to the conflict or increase sanctions pressure on Moscow.
The meeting between Putin and Trump has been described as a significant step towards peace between Russia and Ukraine, with both sides discussing potential economic cooperation between Moscow and Washington. The return of ExxonMobil to Russia could be a key element in this cooperation, but it will require careful negotiation and agreement between the two governments. As the situation continues to evolve, the outcome of ExxonMobil’s potential return to Russia remains to be seen.
